From implementing strategy to embodying strategy: Linking strategy, identity and intellectual capital

For most knowledge‐intensive companies at present, the business environment where they compete is complex, characterized by rapid change and uncertainty. Employees and other intangible resources (i.e. intellectual capital) generally represent the most critical resources in the value creation process. Crafting strategy in such contexts is not helped by conventional models and tools of strategy. The assumptions which underpin many of them do not hold in the present competitive environment, making them at best irrelevant, but at worst leading to the development of strategies that can put the success of a company in jeopardy. New metaphors for describing these companies and their competitive realities, as well as tools for navigating in them, are required, if the strategy discipline is to remain relevant for practitioners. In this paper, it is suggested that the intellectual capital perspective can provide a bridge to the practical application of a vision‐ and values‐based strategy through the notion of embodying strategy in organizational resources. A conceptualization of strategy, that links strategy, identity and intellectual capital, more suitable to knowledge‐intensive companies competing in uncertain environments, is introduced and described.